Oracle will relocate its headquarters from Redwood City, CA in Silicon Valley to Austin, TX. The software giant joins a growing list of companies that have recently decided that Texas is the best location for their corporate headquarters. Earlier this month, Hewlett Packard Enterprise announced it would move its main office to Houston from San Jose, CA. Real estate giant CBRE also moved its base from Los Angeles to Dallas this fall.
“Oracle is a global technology giant with an already strong presence here in Texas, and we are proud to welcome its headquarters to Austin,” said Governor Greg Abbott. “While some states are driving away businesses with high taxes and heavy-handed regulations, we continue to see a tidal wave of companies like Oracle moving to Texas thanks to our friendly business climate, low taxes, and the best workforce in the nation. Most important of all, these companies are looking for a home where they have the freedom to grow their business and better serve their employees and customers, and when it comes to economic prosperity, there is no place like the Lone Star State.”
In an interview with CNBC, Gov. Abbott said the COVID-19 pandemic is a factor in the growing number of companies deciding to move their headquarters to Texas. As part of its relocation announcement, Oracle said it would let many employees choose their office locations and decide whether to work from home.
In addition to the pandemic demonstrating the feasibility of employees working remotely, Abbott noted other factors making Texas attractive to companies. “Cost of business means a lot. No income tax means a lot, but also the freedom to operate without the heavy hand of regulation means a lot,” he explained in the interview.
“This has turned into an absolute tidal wave,” added Abbott, noting many companies such as Oracle already had a presence in Texas before their official relocation announcements. “They are looking for a state that gives them the independence, the autonomy and the freedom to chart their own course.”
Abbott also mentioned Texas’ relationship with Elon Musk, the Tesla and SpaceX chief executive who recently moved from California to Texas, as evidence of the state’s growing appeal to business leaders. Earlier this year, Tesla selected a site near Austin to build its next U.S. factory, and SpaceX has a facility in Boca Chica, TX.
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